Question 1

A difference between contests and sweepstakes is that:

Accepted Answer

Contests usually require the participant to showcase specific skills to win, while sweepstakes are based on chance or luck.

Question 2

In an era of cost cutting and shareholder scrutiny,companies are demanding ___________ across all functions,including marketing,advertising,and promotions.

Accepted Answer

Companies are demanding greater accountability across all functions, including marketing, advertising, and promotions, as they are looking for ways to cut costs and meet the expectations of shareholders. This means that marketing teams need to show measurable results and be able to justify their expenses.

Question 3

Trial offers have the same goal as samples,except that trial offers:

Accepted Answer

Trial offers often involve more expensive items, allowing consumers to try them before making a purchase, unlike samples which are typically lower in cost and given away for free to introduce consumers to a product.

Question 4

A granola bar included in a box of cereal is a:

Accepted Answer

A free premium is an extra item included with a purchase, and in this case, the granola bar is included for free with the box of cereal. A self-liquidating premium requires the customer to pay for it separately, a push strategy involves promoting a product to retailers to persuade them to carry it, and a price-off deal involves lowering the price of a product.

Question 5

A regional office supply store wants to understand and serve its customers better and compete with nationwide giants.It is looking for the most effective way to encourage repeat visits and build long-term loyalty with its customers.Which of the following forms of sales promotion would work best?

Accepted Answer

Frequency programs would be the best choice to encourage repeat visits and build long-term loyalty with customers. By offering rewards or discounts for multiple purchases, the store can incentivize customers to continue shopping with them. This creates a sense of value for the customer and can lead to long-term loyalty.

Question 6

A national merchandising company is a major distributor of grocery and beauty products,and uses many tactics to get samples into the hands of consumers.The most popular type of sampling for food and cosmetics products is _________ sampling.

Accepted Answer

In-store sampling allows consumers to try the product on the spot and potentially make a purchase. This method is more effective for food and cosmetic products as consumers can experience the taste or feel of the product directly. On-package and mail sampling require consumers to already have purchased or received the product, while door-to-door sampling may not be efficient or cost-effective for a national merchandising company.

Question 7

Payments in the form of slotting fees,cash allowances,and incentives are popular due to the power of __________.

Accepted Answer

Slotting fees, cash allowances, and incentives are popular due to the power of retailers. Retailers often have significant leverage over manufacturers in terms of product placement, shelf space, and visibility in stores, leading manufacturers to offer these payments to secure favorable positions for their products.

Question 8

An objective of consumer-market sales promotion is to:

Accepted Answer

The objective of consumer-market sales promotion is to stimulate trial purchases, which means that consumers who have not tried a product before are encouraged to purchase and try it. This can be achieved through various tactics such as free samples, coupons, contests, and other incentives that provide value to the consumer and motivate them to purchase. The other options listed (A, B, and C) are not objectives of consumer-market sales promotion.

Question 9

Which of the following is true of a self-liquidating premium?

Accepted Answer

A self-liquidating premium is a consumer-market sales promotion technique whereby the consumer pays the majority of the cost of the premium, typically through a small handling fee. The cost of the premium is offset by the increased sales revenue generated from the promotion.

Question 10

A retailer is trying to target the "precision shopper," who expects extra value in every single purchase.Which of the following promotional techniques would best increase the value of a brand in a customer's mind?

Accepted Answer

Coupons would be the best choice to target the "precision shopper" who expects extra value in every purchase, as they provide a tangible discount or savings on a specific product, increasing its perceived value to the customer. Bill-back allowances, push money, and off-invoice allowances may be more effective for incentivizing bulk purchases or promoting new products, but they may not address the specific expectations of the "precision shopper."

Question 11

Which of the following is true of sampling?

Accepted Answer

Sampling is the strategy of offering a brand for the consumer to use on a trial basis with less risk, which could lead to increased sales. This allows the consumer to have a firsthand experience with a product before investing in it, giving them a chance to test the product's features and benefits. It is not limited to distributors alone and does not necessarily involve a discount or a money-back guarantee.

Question 12

Sales promotion techniques act as an incentive to purchase the brand featuring a promotion,even if another brand:

Accepted Answer

Sales promotion techniques, such as discounts or free gifts, can make a product seem more appealing despite having a higher price than a competitor. A lower basic price is a significant factor for most consumers when making a purchase decision, and a sales promotion that reduces the price further can be very effective in enticing customers to buy. Therefore, even if another brand has more market share, offers more variety, or more benefits, a sales promotion that lowers the price can still persuade customers to choose the brand featuring that promotion.

Question 13

Which is a reason for growth in the use of sales promotion?

Accepted Answer

Promotions are often measurable, and this allows marketers to determine the effectiveness of their campaigns. This data can be used to refine future promotions, making them even more effective. As a result, growth in the use of sales promotion can be attributed to its effectiveness and measurability. Options A, B, and C all suggest limitations or reductions in traditional forms of trade promotion, and these do not necessarily support its growth.

Question 14

The marketers at Kraft are considering a number of consumer-market sales promotion techniques.Which of the following sales promotion techniques would work best for Kraft Macaroni and Cheese?

Accepted Answer

In-store sampling and an in-store coupon would work best for Kraft Macaroni and Cheese as it allows consumers to try the product before they buy it and also provides an immediate discount incentive to make a purchase. Options A and B involve a delayed benefit or require a larger commitment from the consumer, which may not be as effective for a low-cost, low-involvement product such as macaroni and cheese. Digital advertising may be effective in increasing brand awareness, but may not directly drive sales in the same way as a promotional offer or event.

Question 15

A consumer buys a printer for her computer and receives a money-back offer.To get the premium,she has to mail in a form requesting the money back from the manufacturer rather than the retailer.Which of the following consumer-market sales promotion techniques is exemplified here?

Accepted Answer

This is an example of a rebate, where the consumer receives money back after purchasing the product and sending in a form to the manufacturer.

Question 16

Increasingly,in-store demonstrators giving samples are also:

Accepted Answer

In-store demonstrators giving samples are increasingly handing out coupons along with the sample to encourage consumers to purchase the product.

Question 17

Businesses like to promote their products with rebates because they:

Accepted Answer

Rebates often require consumers to mail in a proof of purchase and wait for a refund, which many consumers do not bother to do. This means that businesses can promote their products as having a rebate without actually having to give out as much money as if they were giving out direct discounts or coupons.

Question 18

The precision shopper is demanding greater __________across all purchases.

Accepted Answer

The precision shopper is looking for higher value across all their purchases, meaning they want to get the most for their money. While options A-C may be important as well, value is the overarching demand.

Question 19

A distinguishing feature of a self-liquidating premium is that it requires the consumer to:

Accepted Answer

A self-liquidating premium is a promotional offer in which the cost of the premium is largely covered by the price that the consumer pays for the product or service. Therefore, the consumer is required to pay most of the cost of the item received in order to qualify for the premium. The other options mentioned in the question such as mail-in reimbursement, buying two other items, or guaranteeing a repeat purchase are not necessarily true for self-liquidating premiums.

Question 20

A(n) ______ entitles a buyer to a designated reduction in price for a product or service.

Accepted Answer

A coupon entitles a buyer to a designated reduction in price for a product or service. Off-invoice allowance is a deduction from the invoice price that the manufacturer or supplier gives to the retailer for carrying out certain services. A bill-back allowance is an amount that the supplier pays to the retailer as compensation for price reductions given to consumers. A slotting fee is a payment that a manufacturer makes to a retailer to get its new product into the store and on the shelves.

Quiz 15: Sales Promotion, point-Of-Purchase Advertising, and Support Media